Security deposits in Hawaii are regulated by Hawaii Revised Statutes § 521-44. Certain municipalities may have local laws that supplement state regulations. To ensure full compliance, verify the regulations applicable in your area.

Maximum Security Deposit

Security deposits are generally limited to one month’s rent. However, if the tenant has a pet, the landlord/property manager can collect an additional deposit up to one month’s rent unless the pet is a service animal.

Holding & Interest Requirements

Holding Requirements: Hawaii state law does not currently specify where landlords/property managers must hold security deposits. 

Interest on Deposits: Hawaii state law does not currently require landlords/property managers to pay tenants interest on security deposits.

Information Provided to Tenant: There is currently no specific requirement for landlords/property managers to provide tenants with information about where the security deposit is held.

Deposit Refunds

Timeline: The landlord/property manager must either (1) return the full security deposit or (2) provide the tenant with a written notice listing deductions to the security deposit, along with the portion of the security deposit being returned, within 14 days of the tenant vacating the property. 

Permissible Deductions: Landlords/property managers may deduct the following from a security deposit:

• Unpaid rent or utilities
• Damages beyond normal wear and tear, including cleaning fees to restore the unit to the same condition as at the start of the tenancy
• Failure to return keys, parking cards, and garage door openers

‍Documentation of Deductions: If any portion of the security deposit is withheld, the landlord/property manager must provide the tenant with a written notice of deductions that must include the details of, the grounds for, and evidence, such as estimates, receipts, and invoices, of the deductions. However, written notice is not required if the tenant is absent from the premises for a continuous period of 20 days or more and has not paid rent.

Penalties for Violations: Failure to return the security deposit or provide written notice of deductions may result in the landlord/property manager being liable for up to three times the portion of the security deposit wrongfully withheld, plus attorney’s fees and court costs if the tenant wins in a lawsuit.  

Sale of the Rental Property

If the property is sold, the landlord/property manager must provide an accounting of all security deposits to the new owner at or before the time of the property transfer. Within 20 days thereafter, the new owner must give the tenant written notice of the amount of their security deposit.